Financials: Dec. Bonds are currently 1'11 lower at 139'11 and the 10 Yr. Notes 23 lower at 128'05. The fear premium continues to be taken out of the interest rate complex as France and Germany seem determined to keep the Euro together by having a plan revealed in the next three weeks to recapitalize banks and deal with European sovereign debt. As mentioned on Friday a close below the 139'26 level will generate a sell signal.
Grains: On Friday Nov. Beans closed 5 cents lower, Dec. Corn 5 lower and Dec. Wheat 8 lower. Over night Beans clsoed 26 higher, Corn 9 higher and Wheat 13 higher. Strength in the Euro and weakness in the Dollar as a result of positive comments by Germany and France have helped boost most commodities overnight. Of note: Crop Production Report this coming Wednesday morning. We remain long out of the money calls and/or call spreads in Dec. Corn.
Cattle: On Friday Dec. Live Cattle closed 55 lower at 121.85 and Nov. Feeder Cattle 75 higher at 142.35. We remain short Dec. Live Cattle from above the 122.00 level with a protective buy stop at 124.35. If Dec. LC trade below 121.25 either take the short term profit or lower your buy stop to the 123.25 level.
Silver: Dec. Silver is currently 93 cents higher at 31.92. We continue to hold a small long position. If you are long term bullish consider going long out of the money calls and/or call spreads for March 2012 expiration.
S&P's: Dec. S&P's are currently 15.00 higher at 1170.00. Comments out of Europe have rallied the equity markets this morning. Support remains at 1143.00 and resistance the 1180.00 area. Treat as a trading market between support and resistance.
Currencies: As of this writing the dec. Euro is 232 higher at 1.3613, the Swiss 256 higher at 1.1060, the Yen 25 higher at 1.3055 and the Pound 100 higher at 1.5644. We remain on the sidelines, however, I will be once again leaning to the short side of the Euro above the 1.3800 level. Also, I am looking to buy the Dec. Yen 1.2400 put.
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